The Scottish Government has set out its plans for "record investment" in local government as the amount each council will receive was revealed.
Finance Secretary John Swinney announced an additional £100m in funding over the next three years.
The total settlement will amount to £34.8bn, spread between Scotland's 32 local authorities.
Mr Swinney signed a concordat with councils last month on the relationship between central and local government.
Mr Swinney told parliament that the settlement "represents a very considerable increase in local government funding."
He added: "It means that by 2010/11 funding will increase by £1.4bn or 12.9% from the equivalent amount in 2007/08.
"That has been achieved despite our receiving from the UK Treasury the tightest settlement since devolution."
'Better off'
Today's settlement will be pivotal in determining whether councils will freeze council tax levels next year.
This is a flagship policy of the SNP government, although the final decision is a matter for councils.
Mr Swinney said: "We have made an additional £70m available in 2008/09 to cover the cost of a council tax freeze - so that each council can keep its council tax at 2007/08 rates.
"On average households in Scotland across all income and council tax bands will be better off with a council tax freeze."
However, a government spokesman confirmed that failure to implement the freeze in council tax, would see individual councils lose out on their share of the £70m allocated next year.
'Gateway for visitors'
A study will also be carried out to look at whether Edinburgh deserves a bigger settlement in future in line with its role as Scotland's capital city.
"I recognise that Edinburgh is increasingly a gateway for visitors and businesses to the rest of Scotland and that the developments needed to sustain and grow Edinburgh will be of benefit well beyond the capital city," Mr Swinney said.
Leading the Labour attack, Andy Kerr complained of a "concordat con" which he said would lead to cuts in services.
"The hallmark of the Alex Salmond-led minority administration in Scotland is broken promises," Mr Kerr said.
For the Tories, Derek Brownlee welcomed the council tax freeze. He told MSPs: "A freeze is better than a rise - and a cut is better than a freeze."
Lib Dem Tavish Scott mocked the SNP, saying: "They are a party masquerading as a government."
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